01—Abstract
Summary
Summary of the 10-Q filed November 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Autodesk, Inc. (ADSK) reported robust financial performance for the third quarter and the first nine months of fiscal year 2025, demonstrating significant growth in net revenue, driven primarily by its subscription offerings.
Total net revenue increased by 18% year-over-year for the quarter and 17% for the nine-month period, reaching $1.85 billiona and $5.25 billion, respectively. The company maintained a high percentage of recurring revenue at 97%, underscoring the stability and predictability of its business model. Profitability also saw substantial improvement, with income from operations increasing by 36% for the quarter and 16% for the nine-month period.
Diluted earnings per share grew significantly, reflecting strong operational execution. Key financial indicators such as Remaining Performance Obligations (RPO) saw a healthy increase, indicating strong future revenue potential.
The company also continued its commitment to returning value to shareholders through substantial share repurchases. Despite a dynamic economic environment, Autodesk's strategic focus on cloud, platform, and AI investments appears to be yielding positive financial results, positioning the company for continued growth.
02—Key points
Key Highlights
- Net revenue grew 18% year-over-year to $1.85 billion for the three months ended October 31, 2025, and 17% to $5.25 billion for the nine months ended October 31, 2025.
- Recurring revenue remained strong, representing 97% of total net revenue for both the three and nine-month periods.
- Income from operations increased by 36% year-over-year to $470 million for the third quarter and 16% to $1.15 billion for the nine-month period.
- Diluted EPS increased to $1.60 for the quarter and $3.76 for the nine months, up from $1.27 and $3.73 respectively in the prior year.
- Remaining Performance Obligations (RPO) increased by 6% to $7.36 billion as of October 31, 2025.
- The company repurchased 1.17 million shares for $358 million during the third quarter and 3 million shares for $1.07 billion for the nine-month period.
- Net revenue retention rate (NR3) was above 110% on a constant currency basis as of October 31, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Autodesk kept $0.19.
- Revenue$1.85B100.0%
- Cost of revenue−$165.0M8.9%
- Gross profit$1.69B91.1%
- Operating costs−$1.22B65.7%
- Operating income$470.0M25.4%
- Interest, other & tax−$127.0M6.9%
- Net income$343.0M18.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 26, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.85B$1.57B | +18.0% |
| Cost of Revenue | $165.00M$147.00M | +12.2% |
| Gross Profit | $1.69B$1.42B | +18.6% |
| R&D Expenses | $416.00M$378.00M | +10.1% |
| Operating Expenses | $1.22B$1.08B | +13.1% |
| Operating Income | $470.00M$346.00M | +35.8% |
| Interest Expense | $22.00M$18.00M | +22.2% |
| Net Income | $343.00M$275.00M | +24.7% |
| EPS (Basic) | $1.61$1.28 | +25.8% |
| EPS (Diluted) | $1.60$1.27 | +26.0% |
| Shares Outstanding (Basic) | 213.00M215.00M | −0.9% |
| Shares Outstanding (Diluted) | 215.00M217.00M | −0.9% |
05—Questions
Frequently Asked Questions
How did Autodesk's subscription revenue perform in this quarter?
Subscription revenue was the primary driver of growth, increasing by 19% year-over-year to $1.73 billion for the three months ended October 31, 2025, and by 17% to $4.92 billion for the nine months ended October 31, 2025. This growth was attributed to renewals from the existing subscriber base and increased revenue from Cloud Service offerings and Enterprise Business Agreements (EBAs).
What is the company's outlook on its Remaining Performance Obligations (RPO)?
Autodesk's RPO stood at $7.36 billion as of October 31, 2025, an increase of 6% from the prior fiscal year-end. Of this amount, $4.83 billion is expected to be recognized as revenue in the next 12 months, indicating strong visibility into future revenue.
How is the company managing its operating expenses?
Total operating expenses increased by 13% year-over-year for the third quarter, largely due to an increase in marketing and sales expenses related to the new transaction model and increased R&D for cloud and AI investments. However, the company is focused on operational leverage, with expected decreases in General and Administrative expenses and savings from its recent restructuring plan.
What is the impact of the new transaction model on revenue and expenses?
The new transaction model, which recognizes Solution Provider commissions as operating expenses rather than contra-revenue, is expected to positively impact calculated revenue growth while being broadly neutral to operating profit and free cash flow dollars. This shift is also expected to result in a calculated negative impact on operating margin. The company noted that sales incentives to Solution Providers in the new model are capitalized as costs to obtain a contract.
06—Continue